New Zealand becomes the first country to legalize cryptocurrency salaries, as per reports by the Financial Times.
The country’s tax agency ruled salaries and wages can be paid in digital currencies as long as the preferred digital coin is pegged to at least one standard or fiat or currency that can be directly convertible into a standard form of payment.
The rule allows Bitcoin, one of the most popular cryptocurrency in the world today can now be used to pay salaries in New Zealand starting from September 1. Now this rule is applicable to bonuses as well not just salaries.
The salary option will still be a part of the nation’s income tax scheme, and the ruling excludes self-employed workers from swapping their income to cryptocurrency.
Stirring existing controversies
Thomas Hulme, a solicitor at Mackrell Turner Garrett, told the FT:
“another step towards governments recognizing that actually people are wanting to be paid in” cryptocurrencies.
Cryptocurrencies are not as regulated as fiat currencies and their untrackable nature has been controversial since gaining traction in mainstream applications.Considering the highly volatile nature of Cryptocurrencies this is certainly a bold move.
Now that companies like Facebook and IBM are into the mix Cryptocurrencies are here to stay in one way or the other.Bitcoin currently trades at a 19-month high and might potentially break its own record of 20,000$ mark if it keeps up the current pace. Mainstream attention from credible companies have certainly helped the cryptocurrency shoot back into prominence.
The New Zealand government’s decision to legalize salary payments will surely turn eyeballs and maybe will inspire other countries to embrace the technology with open arms.
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